The world is rapidly transitioning toward sustainable mobility, and one of the most impactful shifts is happening in the three-wheeler segment. L5 category vehicles—defined by their design to carry goods or passengers with three wheels and an electric drivetrain—are gaining momentum, especially in emerging markets where last-mile connectivity and affordability are crucial. The Electric L5 Vehicles Market is not just expanding; it’s transforming the way cities move, work, and breathe.
A Booming Market with High Potential
In 2024, the global Electric L5 Vehicles Market was valued at approximately US$ 2.4 billion. Fast forward a decade, and the market is projected to reach a whopping US$ 18.7 billion by 2035, growing at a compound annual growth rate (CAGR) of 19.5% between 2025 and 2035. These figures reflect more than just strong sales—they signify a growing commitment from governments, industries, and consumers to embrace cleaner transportation alternatives.
The demand is primarily fueled by increasing urbanization, rising fuel prices, government subsidies, and a heightened awareness of environmental issues. In cities across Asia, Africa, and Latin America, electric three-wheelers have become vital tools for both cargo delivery and passenger transportation. Their low operational cost, minimal emissions, and suitability for short-distance travel make them a perfect fit for urban environments.
Leaders in the Field: Who’s Shaping the Market?
The market is populated by both legacy manufacturers and new-age startups. Notable among the key players are Mahindra Electric, Piaggio, Kinetic Green, Bajaj Auto, and Omega Seiki Mobility. These companies have consistently demonstrated strong regional presence, established distribution networks, and forward-looking innovations in design and battery performance.
For instance, Mahindra Electric and Piaggio have been pivotal in making reliable and versatile electric three-wheelers available to the masses. Their vehicles are widely used for both passenger commutes and cargo delivery, thanks to features like high durability, cost-effectiveness, and service support. As demand surges, these manufacturers are responding with newer, smarter models tailored for urban mobility.
However, competition in the Electric L5 Vehicles Market is intensifying. With many startups entering the arena, pricing and innovation are becoming key differentiators. These new entrants are often agile and focused on affordability, giving traditional automakers a run for their money.
Global Players and the Chinese Influence
While domestic manufacturers dominate many regional markets, Chinese companies like Yadea and Dongfeng are eyeing global expansion. Leveraging their scale and cost advantages, these manufacturers are poised to disrupt international markets. Their entry may push existing players to ramp up innovation and improve cost-efficiency to remain competitive.
This increasing globalization of the L5 market highlights how electric mobility is no longer a regional trend—it’s a worldwide movement. Companies across borders are now competing not just on price, but also on performance, battery longevity, after-sales service, and user experience.
Strategic Alliances and Key Developments
Strategic partnerships have become a cornerstone of growth for many key players in the Electric L5 Vehicles Market. By collaborating with logistics firms, energy companies, and technology providers, manufacturers are expanding their capabilities and tapping into new customer bases.
A notable development took place in August 2024, when Mahindra Last Mile Mobility Limited launched the all-new e-Alfa Plus, an upgraded electric three-wheeler designed for durability and daily usage. It features an advanced Permanent Magnet Synchronous Motor (PMSM) delivering 1.95 kW of peak power at 2600 rpm and maximum torque of 26.9 Nm at 200 rpm—a robust solution for urban passenger transport.
Meanwhile, Bajaj Auto Ltd. made headlines in May 2024 through its strategic partnership with Flipkart to electrify last-mile delivery. This collaboration will see the deployment of 1,000 electric three-wheelers over two years. These vehicles, part of Bajaj’s E-TEC Cargo range, promise improved efficiency and reduced carbon footprint for one of India’s largest e-commerce platforms.
In February 2025, Euler Motors joined hands with Tata Power Renewables to address a critical challenge in EV adoption: charging infrastructure. Their partnership involves the deployment of fast chargers for Euler’s customers, significantly enhancing the usability and convenience of electric three-wheelers.
These strategic developments underscore the broader shift toward ecosystem thinking. Companies are no longer just selling vehicles—they’re offering complete mobility solutions, including energy access, financing, maintenance, and software integration.
In-Depth Look at Key Players
Some of the most prominent manufacturers shaping the future of the Electric L5 Vehicles Market include:
- Mahindra Last Mile Mobility (Mahindra Group)
- Bajaj Auto Ltd.
- Piaggio Vehicles Pvt. Ltd.
- Euler Motors
- Omega Seiki Mobility
- TVS Motor Company Limited
- ATUL Auto Limited
- TI Clean Mobility Private Limited
- KETO Motors Pvt. Ltd.
- Altigreen Propulsion Labs
- BILITI Electric Inc.
- BEMAC Corporation
- Kinetic Green Energy & Power Solutions Ltd.
Each of these companies brings unique strengths, whether it’s extensive R&D capabilities, established dealer networks, or focused innovation in battery and motor technologies. Market reports often profile these players based on financial performance, product lineup, strategic initiatives, and geographical reach.
Policy Push and Government Incentives
Governments worldwide are stepping up efforts to decarbonize urban transport. In India, for instance, the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme has significantly accelerated the adoption of electric vehicles, including L5 three-wheelers. Tax exemptions, direct subsidies, and grants for battery and charging infrastructure are making electric mobility more accessible and attractive for both consumers and fleet operators.
Other countries are implementing low-emission zones, mandating electric fleets for public transport, and providing incentives for EV manufacturing. These measures are expected to further accelerate the shift toward electric L5 vehicles in the coming years.
Future Outlook
The road ahead for the Electric L5 Vehicles Market looks bright and promising. Several trends are expected to define the market in the next decade:
- Battery innovation: Advancements in lithium-ion and solid-state batteries will offer better range, faster charging, and lower costs.
- Digital integration: Telematics, GPS tracking, and fleet management software will become standard features in commercial electric three-wheelers.
- Global expansion: With success in domestic markets, more manufacturers will look to export their products, especially to Africa, Southeast Asia, and Latin America.
- Sustainable supply chains: Companies will aim to reduce the carbon footprint across the entire lifecycle of their vehicles—from raw material sourcing to recycling.
Conclusion
The Electric L5 Vehicles Market is more than just a business opportunity—it’s a blueprint for sustainable, inclusive, and modern urban mobility. With a market size projected to reach nearly US$ 18.7 billion by 2035, and a growth rate that far outpaces most traditional automotive segments, electric L5 vehicles are here to stay.
As manufacturers continue to innovate and governments provide supportive ecosystems, these electric three-wheelers will play a crucial role in shaping cleaner, quieter, and more efficient cities. Whether it’s for a daily commuter in Delhi, a cargo delivery in Jakarta, or a passenger ride in Nairobi, L5 electric vehicles are helping the world move in the right direction—toward a greener future.
These insights are based on a report on the Electric L5 Vehicles Market by Transparency Market Research (TMR).
Author:
Bhushan Dhumal
Lead Researcher, Transparency Market Research
Media Relations & Mobility Technology Analyst
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